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Microsoft's £4.5bn deal approved by Nokia’s shareholders

by Mark Tyson on 19 November 2013, 23:51

Tags: Nokia (NYSE:NOK), Microsoft (NASDAQ:MSFT)

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The last time we mentioned Microsoft’s decision to buy out Nokia’s devices division on HEXUS was back in September. It’s a big day for shareholders of the Finnish company today as the sale was agreed, with 99.7 per cent who participated in the Nokia shareholder vote giving the deal the green light, reports the Financial Times.

Although the deal, worth around £4.5 billion, still needs to be cleared by the regulators it should close by early 2014. The former Nokia CEO Stephen Elop will then step down from the Nokia’s board and move back to his former employer Microsoft to run his own devices and service team. Elop has hard work ahead as he will be expected to keep up or improve upon Windows Phone’s positive momentum in a tough market for Microsoft. We will also see 4,700 of Nokia’s Finnish employees transferred to Microsoft.

Nokia is regarded as a national success in Finland and Chairman Risto Siilasmaa said he believes the sale would “raise deep feelings” among Finns reports the BBC news . With this deal of Microsoft acquiring Nokia’s devices business, the Nokia that remains plans to focus on developing “advanced technologies, its patent portfolio and Nokia brand”. Their CFO Timo Ihamuotila also said to believe that "Subject to the deal with Microsoft closing, Nokia's earnings profile and financial position are expected to strengthen significantly," on the company’s third quarter earnings call last month.

Meanwhile there appears to be little progress in deciding upon the next Microsoft CEO. That last we heard Stephen Elop and Ford Motor Co chief Alan Mulally were top favourites. However The Verge reports tonight that Bill Gates was “fighting back the tears” discussing Ballmer’s stepping down and the continued search for a successor.

HEXUS Forums :: 4 Comments

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I guess eslops off the table are better than a kick in the arse.
I guess eslops off the table are better than a kick in the arse.

would that be an ekick then?!
I wonder if it'll be approved by anything like 99% of phone-buying Nokia customers …. what's left of them?

I also wonder if new Nokia phones will just resemble existing MS designs, with a Nokia label on them, in a sort-of me-too branding exercise.

Sad day, IMHO.
I also wonder how many customers will be happy with this. I know I would prefer Nokia to operate independently. I was sad to here their effort with Meego get scrapped because I'd like to see another, more secure and consumer friendly, OS in the mobile space and Meego seemed promising at one point.

We will find out eventually but I am not optimistic.